Assume the average cost of computer equipment fell 24.5 percent between 2016 and 2017. Lets see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2017.

Assume the average cost of computer equipment fell 24.5 percent between 2016 and 2017. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2017 2017 $100,300 61,700 2016 $128,468 77,081 Sales Revenues Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income Before Income Tax Expense Income Tax Expense Net Income 38,600 30, 200 586 51,387 30,200 480 7,814 4,708 20,707 6,737 $ 3,106 $ 13,970 Required: 1-a. Compute the gross profit percentage for each year. (Round your answers to 1 decimal place.) 2017 2016 % Gross profit % 1-b. Not available in Connect. 2-a. Compute the net profit margin for each year. (Round your answers to 1 decimal place.) 2017 2016 Net profit % % 2-b. Not available in Connect. 3-a. Computer Tycoon reported average net fixed assets of $72,000 in 2017 and $72,000 in 2016. Compute the fixed asset turnover ratios for both years. (Round your answers to 2 decimal places.) 2017 times 2016 times Fixed asset turnover ratio 3-b. Not available in Connect. 4-a. Computer Tycoon reported average shareholders' equity of $63,000 in 2017 and $49,800 in 2016. Compute the return on equity ratios for both years. (Round your answers to 1 decimal place.) 2017 2016 Return on equity (ROE) % % 4-b. Did the company generate greater returns for shareholders in 2017 than in 2016? Yes O No